TL;DR: Yes, you can get a mortgage with a limited company in the UK. The company must be set up as a Special Purpose Vehicle (SPV) with the correct SIC codes registered at Companies House.
Lenders focus on the directors’ credit and income rather than the company’s trading history. Buy to let, holiday let, bridging and commercial mortgages are all available through an SPV.
You will need a specialist mortgage broker and an experienced accountant to make this work.
Buying property through a limited company is no longer something only experienced investors do.
According to research by Hamptons, a record 61,517 new limited companies were set up to hold buy-to-let property in 2024 alone, a 23% increase on the previous record set in 2023. Since the government changed the tax rules for individual landlords, the majority of new buy-to-let purchases now go into a company structure.
But one of the first questions people ask is: can you actually get a mortgage through a limited company, and if so, how does it work?
The short answer is yes, you can.
There are rules around how the company must be set up, and the mortgage application process differs from a standard personal mortgage. Getting this wrong at the start can lead to a declined application or significant delays.
This article walks you through everything you need to know, from setting up the right type of company to what lenders look for and how to find the right mortgage.
Why Are So Many Landlords Using Limited Companies for Property?
There has been a notable shift over the past decade in how landlords hold property.
At the start of 2024, there were 345,426 active limited companies set up to hold buy-to-let property in the UK, an increase of 82% from the end of 2016, according to Hamptons.
For most of that time before those tax changes, owning rental property personally was the simpler choice. You applied for a buy to let mortgage in your own name, collected rent, and paid income tax on the profit.
The Section 24 Tax Change
That changed when HMRC introduced what is widely known as Section 24.
Phased in from 2017, this removed the ability for individual landlords to deduct their full mortgage interest from rental income before calculating tax. Instead, you now only receive a basic rate tax credit. For higher and additional rate taxpayers, this significantly increased the tax on rental profits, making the figures work much less favourably than before.
Limited companies do not face the same restriction.
A company can still deduct 100% of its mortgage interest as a business expense, which is one of the main financial reasons investors have moved to this structure.
Hamptons estimates that had the tax changes not come into effect, around 223,000 fewer buy-to-let companies would have been incorporated over the last nine years.
That said, whether it is right for your specific situation depends on your personal tax position, and you should always take professional advice before making this decision.
What Type of Limited Company Do You Need for a Mortgage?
This is where a lot of people get caught out.
Not every limited company is acceptable to a mortgage lender, and applying with the wrong type of company is one of the most common reasons for a declined application.
SPV vs Trading Company
There are broadly two types of company to understand here.
A trading company is one that actively runs as a business.
It has employees, sells products or services, generates turnover, and has trading accounts.
Most mortgage lenders will not accept a trading company for property investment purposes. The reason is straightforward: a trading business brings additional risk and complexity, and the potential for the company’s finances to be entangled with other debts.
A small number of specialist lenders will consider trading companies, but the criteria are stricter and the choice of products is significantly more limited than for a clean SPV.
A Special Purpose Vehicle (SPV) is different. It is a limited company set up with a single purpose, which in this context is to passively hold property. It does not trade, does not have staff, and does not generate income from anything other than the properties it owns. Most lenders actively prefer this structure. It is clean, simple to assess, and limits their exposure to unrelated business risks.
Our Guide to SPV’s explains them in more detail.
SIC Codes
When you register a company at Companies House, you need to select a Standard Industrial Classification (SIC) code.
This code describes the nature of your company’s activities. For property investment SPVs, the most common SIC codes accepted by lenders are:
68100 – Buying and selling of own real estate
68209 – Letting and operating of own or leased real estate
68320 – Management of real estate
Lenders check these codes as part of their assessment.
If your company has the wrong SIC code or is registered as a trading business with unrelated activities, the application is likely to be declined at an early stage. A broker can help you identify this before you apply.
How do you set up an SPV Limited Company?
We explain what an SPV company is and the process of setting one up.
What Types of Mortgage Can a Limited Company Get?
Once your SPV is correctly set up, you have access to a range of mortgage products.
Here is what is available.
Buy to Let
Buy to let mortgages through a limited company have grown considerably in popularity. According to Hamptons, 70% to 75% of new buy-to-let purchases now go into a company structure, a figure that has risen consistently since the tax changes were introduced.
Lenders typically offer up to 75% loan-to-value (LTV), so you would need a 25% deposit. To buy a property worth £500,000, for example, you would need at least £125,000 as a deposit, with the company borrowing the remaining £375,000.
The rental income from the property is used to assess affordability using an interest rate stress test. For personal buy to let borrowing, lenders typically require the rent to cover at least 145% of the monthly mortgage payment.
For limited company borrowers, the coverage ratio is usually set at 125%, which means companies can often borrow more against the same property than an individual owner could.
You can hold multiple properties within a single SPV, which makes ongoing administration and tax returns more straightforward.
Learn more: A Practical Guide to Buy To Let Mortgages
Holiday Let
Holiday let mortgages through a limited company are widely available, again up to 75% LTV.
This suits investors who prefer to hold a holiday let within a company structure for tax or planning reasons. Holiday let income can be more variable than standard buy to let income, so lenders tend to assess applications slightly differently, often requiring projected rental income from a letting agent as part of the application.
Learn more: The Complete Guide to Holiday Let Mortgages
Bridging Loans
Bridging lenders have always been comfortable working with limited companies and SPVs.
Bridging finance is short-term lending, typically for three to thirty-six months, and is often used when a property is currently unmortgageable on standard terms or needs to be purchased quickly.
This makes it popular for auction purchases, properties requiring refurbishment, or situations where a conventional mortgage timeline would not work. Lending is generally available up to 75% LTV, and lenders focus primarily on the security and the exit plan rather than the directors’ income.
Learn more: An introduction to bridging loans
Commercial Mortgages
Commercial mortgages are available to both SPV limited companies and trading businesses looking to buy their own premises.
These can be used to purchase commercial investment property, land, or mixed-use buildings. The assessment process is more involved than residential or buy to let lending, and lenders typically require detailed business financial information alongside the property details.
How Do You Set Up an SPV Limited Company?
If you do not already have an SPV in place, you need to register one through Companies House before you can apply for a mortgage. The registration process is straightforward and can be completed online in a matter of hours.
When setting up the company, you will need to take the following steps:
- Choose the correct SIC code for property holding (68100, 68209, or 68320)
- Appoint the directors who will be named on the mortgage application
- Issue shares to the shareholders
- Open a dedicated business bank account in the company’s name
These decisions matter from both a legal and a tax perspective, so involving your accountant at this stage makes sense.
The company can be brand new when you apply for a mortgage. Lenders are used to receiving applications from recently formed SPVs with no trading history, and this does not affect the application negatively.
To learn more about this read our guide to setting up an SPV limited company.
How Does the Mortgage Application Work for a Limited Company?
In legal terms, the company is the borrower.
The company owns the property and takes on the mortgage debt. You, and any other shareholders, own the company. The way lenders underwrite the application reflects this structure.
What Lenders Look for in the Directors
Because the SPV itself has no financial track record, lenders look closely at the directors to assess creditworthiness.
Each director will typically need to have a clean credit history and demonstrate a minimum personal income.
Requirements vary across lenders, with some setting a minimum of £15,000 and others requiring up to £25,000. A number of lenders now offer ltd company buy to let mortgages with no minimum personal income requirement at all, which is worth exploring if your income is variable or lower.
The directors’ personal credit files are assessed in much the same way as a standard residential mortgage application. Any adverse credit, county court judgements, or missed payments will need to be declared and could affect which lenders are available to you.
Personal Guarantees
Because the mortgage sits with the company, lenders require directors to sign a personal guarantee. This means that if the company cannot meet its mortgage obligations, the lender can pursue the directors personally for any shortfall.
This is standard practice in limited company lending, but you need to understand fully what you are signing before you do so. The consequences can include claims against your personal assets, so taking independent legal advice before signing is a sensible step.
The Company Bank Account and Deposit
Your SPV needs its own business bank account before you apply for a mortgage.
The monthly mortgage payments will come from this account, and you will need to provide the bank details as part of the application.
The deposit also needs to come from the company, not from you personally.
This is where a director’s loan account becomes useful. As a director, you can lend money to your own company, which then uses those funds to pay the deposit.
This is recorded as a loan from the director to the company and sits on the company’s balance sheet accordingly. Your accountant can guide you on how to structure this correctly and how it interacts with your overall tax position.
What Are the Extra Costs of a Limited Company Mortgage?
Limited company mortgages do come with some additional costs compared to personal mortgages. It is worth factoring these in before you commit.
Lender arrangement fees tend to be higher on company buy to let products than on standard residential mortgages, and can sometimes reach 2% of the loan amount or more.
Legal costs are also higher because there is both a personal element and a corporate element to the transaction. If directors are signing personal guarantees, separate legal advice may be required for each director, which adds to the overall cost.
There is also the cost of running the company itself.
You will need to file annual accounts at Companies House, submit a corporation tax return each year, and pay an accountant to manage this on an ongoing basis. These are real running costs of the SPV structure, and they should be included in your financial planning from the outset.
Which Lenders Offer Limited Company Buy to Let Mortgages?
The high street banks largely avoid SPV mortgages.
They tend to find the additional complexity unappealing compared to standard residential lending.
A significant number of specialist buy to let and holiday let lenders are set up to work with SPV applications, and this part of the market has grown considerably in recent years. Some comparison tools now track rates from over 80 lenders offering limited company buy to let products, reflecting how mainstream this type of lending has become.
Many of these specialist lenders only accept applications through mortgage brokers and do not deal directly with borrowers. This is common in specialist finance, and it is one of the main reasons why having a broker is not just helpful but often the only way to access the lenders best suited to your situation.
Getting the Right Advice
Two professionals are essential if you are going to use a limited company to invest in property.
Your Accountant
Your accountant should have experience specifically with property-holding companies and SPV structures.
Not every accountant does.
You need someone who can advise on whether a limited company is right for you financially, help structure the directors and shareholders correctly, and handle the annual compliance requirements for Companies House and HMRC.
The decision to invest through a company is not right for everyone, and a good accountant will tell you honestly if the savings do not stack up in your particular circumstances.
Your Mortgage Broker
Your mortgage broker must be independent and whole-of-market, with direct experience arranging limited company mortgages.
This is not a case where any broker will do.
The right broker understands SPV structures, knows which lenders work with newly formed companies, and has access to the specialist lenders who operate in this part of the market. They will also help you prepare your application correctly from the start, which reduces the risk of problems further down the line.
When you are ready to move forward, we can connect you with an independent mortgage broker who specialises in exactly this type of lending.
Frequently Asked Questions
You can, but only if the company has the right SIC codes and is structured as a passive property-holding vehicle. If your existing company is a trading business with unrelated activities, most mortgage lenders will not accept it. Setting up a new SPV specifically for property investment is usually the cleaner approach.
No. Lenders are comfortable receiving applications from brand new SPVs with no trading history. This is extremely common in the buy to let market. Because lenders focus on the directors’ credit and income rather than the company’s accounts, there is no minimum trading period required.
No. Properties held in a limited company cannot be used as your personal residence. SPV mortgages are for investment properties only. Living in a company-owned property would create significant tax complications and would breach the terms of the mortgage.
There is no limit set by Companies House on how many properties an SPV can hold. Most lenders are happy to accommodate multiple properties within a single company, though some set portfolio caps. For portfolio landlords with four or more mortgaged properties, PRA (Prudential Regulation Authority) rules mean lenders apply additional underwriting scrutiny, which is worth knowing before you reach that threshold. A broker can identify lenders suited to the size of your portfolio.
Yes, interest-only mortgages are available to SPV companies, subject to lender criteria. Many investors prefer interest-only as it keeps monthly costs lower and maximises cash flow from rental income. You will need a credible repayment strategy, which is typically the sale of the property or a refinance at the end of the term.
You can, but it is not a simple transfer. Moving a property from personal ownership into a limited company is treated as a sale for tax purposes. You may face capital gains tax on any increase in value, stamp duty on the company’s purchase, and legal fees on both sides. You will also need to arrange a new mortgage in the company’s name. Most accountants recommend using the SPV structure for new purchases rather than transferring existing properties.
